Wildhorse Company's accounting records indicated the following information: Inventory, 1/1/20 $ 1890000 Purchases during 2020 9900000 Sales during 2020 12390000 A physical inventory taken on December 31, 2020, resulted in an ending inventory of $2190000. Wildhorse's gross profit on sales has remained constant at 24% in recent years. Wildhorse suspects some inventory may have been taken by a new

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Wildhorse Company's accounting records indicated the following information: Inventory, 1/1/20 $ 1890000 Purchases during 2020 9900000 Sales during 2020 12390000 A physical inventory taken on December 31, 2020, resulted in an ending inventory of $2190000. Wildhorse's gross profit on sales has remained constant at 24% in recent years. Wildhorse suspects some inventory may have been taken by a new employee. At December 31, 2020, what is the estimated cost of missing inventory? S783600. $183600. $600000. $416400.

Expert Answer

Answer :- -The estimated cost of missing inventory is calculated as follows: Ending Inv… View the full answer